South Africa has taken another significant step toward regulating the cryptocurrency industry with the release of the Draft Crypto Asset Manual for Cross-Border Activities. Published by the National Treasury and the South African Reserve Bank (SARB), the draft manual aims to establish a clear framework for the movement of crypto assets across South Africa’s borders while strengthening oversight of financial flows. The proposal complements the draft Capital Flow Management Regulations and forms part of a broader strategy to reduce regulatory gaps, combat illicit financial activity, and improve transparency in the country’s digital asset ecosystem.
A central feature of the draft manual is the introduction of a clear “trigger point” for determining when a crypto asset transaction becomes a cross-border transaction. According to the proposal, a transaction is considered cross-border when crypto assets move between a South African Authorised Crypto Asset Service Provider (CASP) and an offshore CASP, or when assets are transferred from a domestic CASP to a non-custodial wallet. Once this trigger point is reached, the transaction becomes reportable to the Financial Surveillance Department (FinSurv).
The manual also establishes a formal authorisation framework for Crypto Asset Service Providers. Any CASP wishing to facilitate cross-border crypto transactions must first obtain approval from the Financial Surveillance Department. Applicants will be required to demonstrate regulatory compliance, maintain appropriate governance structures, meet capital requirements, implement effective risk management systems, and integrate with the FinSurv Reporting System before being permitted to conduct cross-border crypto business.
The proposed framework divides Authorised CASPs into three categories based on the services they provide. Category One providers will focus primarily on remittance services using crypto assets as a settlement mechanism. Category Two providers may facilitate broader cross-border crypto asset transactions through South African custodial wallets, while Category Three providers may offer a combination of both remittance and broader crypto services. This tiered approach allows regulators to tailor oversight according to the complexity and risk profile of each business model.
The draft manual also sets out clear rules for individuals using crypto assets. Resident South Africans will be permitted to transfer crypto assets abroad under existing exchange control allowances, including the Single Discretionary Allowance of up to R2 million per calendar year and the Foreign Capital Allowance of up to R10 million annually for qualifying taxpayers. Transfers under the higher allowance require verification of tax compliance through a SARS Tax Compliance Status (TCS) PIN.
Importantly, the framework distinguishes between domestic and cross-border transactions. Purchasing crypto assets with Rand from a domestic Authorised CASP, transferring crypto between domestic CASPs, or selling crypto assets locally for Rand are treated as domestic, non-reportable activities. By contrast, transfers between domestic and offshore CASPs or to non-custodial wallets are classified as imports or exports of capital and must be reported to FinSurv.
Beyond transaction reporting, the manual imposes extensive compliance obligations on Authorised CASPs. Providers must conduct customer due diligence, verify clients’ identities and source of funds, retain transaction records for at least five years, maintain segregated client funds, and monitor transactions for potential breaches of exchange control rules. They are also required to report suspicious activities and comply with broader legislation, including the Financial Intelligence Centre Act and anti-money laundering requirements.
The National Treasury and SARB have stressed that the draft manual remains open for public consultation. Stakeholders are invited to submit comments before 30 September 2026 using the prescribed comment template. The authorities have also emphasised that the draft may still be refined following public feedback and ongoing consultations. Overall, the proposed framework reflects South Africa’s intention to regulate cross-border crypto activity without prohibiting innovation, while ensuring that digital asset transactions are subject to the same standards of transparency, accountability, and financial integrity that apply to traditional cross-border capital flows.